In Michigan, what constitutes 'good cause' for Monicals Pizza to terminate a franchise agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The subdivision does not prevent a Franchisor from exercising a right of first refusal to purchase the franchise.
Good cause shall include, but is not limited to:
The failure of the proposed transferee to meet the Franchisor's then-current reasonable qualifications or standards.
The fact that the proposed transferee is a competitor of the Franchisor or Subfranchisor.
The unwillingness of the proposed transferee to agree i
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 FDD, the excerpt provided does not specify what constitutes 'good cause' for Monicals Pizza to terminate a franchise agreement specifically within the state of Michigan. However, it does state that the subdivision does not prevent Monicals Pizza from exercising a right of first refusal to purchase the franchise.
The document outlines some conditions that constitute 'good cause' in general terms, such as the failure of a proposed transferee to meet Monicals Pizza's qualifications or standards, or if the proposed transferee is a competitor. These conditions apply when a franchisee attempts to transfer their franchise to another party.
To fully understand the conditions under which Monicals Pizza can terminate a franchise agreement in Michigan, a prospective franchisee should consult the complete franchise agreement and any addenda specific to Michigan. They should also directly ask Monicals Pizza for clarification on what specific actions or failures would constitute 'good cause' for termination in Michigan, as the FDD excerpt does not provide a comprehensive list.